Halliburton

Halliburton Energy Services NYSE: HAL is a multinational corporation based in Houston, Texas. With revenues exceeding $20.46 (billion U.S. FY 2004) and over 95,000 employees, Halliburton operates in two major business segments. The Energy Services Group provides technical products and services for oil and gas exploration and production. The KBR group is a major construction company of mainly refineries, oilfields & pipelines, and chemical plants.

Business Overview
Energy Services, the company's historical bedrock, includes: drilling & formation evaluation, digital & consulting solutions, production volume optimization, and fluid Systems. This business continues to be profitable, and the company is a world leader in this industry; Schlumberger is the company's closest competitor.

With the acquisition of Dresser Industries in 1998, the Kellogg-Brown & Root division (in 2002 renamed to KBR) was formed by merging Halliburton's Brown & Root (acquired 1962) subsidiary and the M.W. Kellogg division of Dresser (which Dresser had merged with in 1988). KBR is a major international construction company, which is a highly volatile undertaking subject to wild fluctuations in revenue and profit. Asbestos-related litigation from the Kellogg acquisition caused the company to book over $4.0 (billion U.S.) in losses from 2002 through 2004.

As a result of the asbestos-related costs, Halliburton lost approximately $900 million U.S. a year from 2002 through 2004.

At a meeting for investors and analysts in August 2004, a plan was outlined to divest the KBR division through a possible sale, spin-off or initial public offering. Analysts at Deutsche Bank value KBR at up to $2.15 billion, while others believe it could be worth closer to $3 billion by the time management decides what to do with the business in 2005.

History

1919 to 1990
Mr. and Mrs. Erle P. Halliburton first tried to find work cementing oil wells in Burkburnett, Texas then moved their business (New Method Oil Well Cementing Company) to the Healdton field near Ardmore, Oklahoma.

1920: reorganized - Halliburton Oil Well Cementing Company
1921: headquarters - Duncan, Oklahoma
1924: incorporation
1948: New York Stock Exchange listing
1957: acquisition of Welex Jet Services of Fort Worth, Texas
1960: name shortened to Halliburton Company
1961: headquarters - Dallas, Texas
1962: acquisition of Brown and Root of Houston, Texas
1988: acquisition of Geophysical Service Incorporated from Texas Instruments
198?: acquisition of Geosource
198?: Halliburton Logging Services
1982: workforce - 115,000
1982: energy industry decline
1991: workforce - 73,000

1990s
In the aftermath of Operation Desert Storm in Kuwait in 1991, Halliburton crews helped bring 320 burning oil wells under control.
In the early 1990s Halliburton was found to be in violation of federal trade barriers in Iraq and Libya, having sold these countries dual-use oil drilling equipment and, through its former subsidiary, Halliburton Logging Services, sending six pulse neutron generators to Libya. After having pleaded guilty, the company was fined $1.2 million, with another $2.61 million in penalties.
In the Balkans conflict in the 1990s, KBR supported U.S. peacekeeping forces in Bosnia, Croatia and Hungary with food, laundry, transportation and other lifecycle management services.
In 1995 Dick Cheney became chairman and CEO
In 1998 Halliburton merged with Dresser Industries, which included Kellogg.

2000s
On 10 April 2001 the Dresser division (excluding the former Kellogg division) entered an agreement to separate itself once again from Halliburton by management purchasing its equity, the new company to be called Dresser Inc.
In 2001 it was reported by The Wall Street Journal that a subsidiary of Halliburton Energy Services called Halliburton Products and Services Ltd. opened an office in Tehran. The company, HPS, operated "behind an unmarked door on the ninth floor of a new north Tehran tower block." Although HPS was incorporated in the Cayman Islands in 1975 and is "non-American", it shares both the logo and name of Halliburton Energy Services and, according to Dow Jones Newswires offers services from Halliburton units world-wide through its Tehran office. Such behaviour, undertaken while Cheney was CEO of Halliburton, may have violated the Trading with the Enemy Act. A Halliburton spokesman, responding to inquiries from Dow Jones, said "This is not breaking any laws. This is a foreign subsidiary and no US person is involved in this. No US person is facilitating any transaction. We are not performing directly in that country." No legal action has been taken against the company or its officials.
In 2002, Judicial Watch, a public action lawfirm, filed suit on behalf of shareholders against Halliburton, its current and former directors, and its accounting firm, Arthur Andersen LLP and Arthur Andersen Worldwide, for alleged accounting irregularities, said to be profit inflation by accounting for cost overruns as revenue. The Securities and Exchange Commission investigated the same issue. Halliburton counters that the practice was approved by its accounting firm, Arthur Andersen, and conforms to generally accepted accounting practices. In August, 2004, Halliburton paid a $7.5 million fine to settle the issue.
In April 2002, KBR was awarded a $7 million contract to construct steel holding cells at Camp X-Ray. More recently, the subsidiary was awarded a no-bid contract to conduct oil well firefighting in Iraq worth an estimated $1 billion. In May 2003, Halliburton's role under contract with regard to Iraqi oilfields was expanded to include "operation of facilities and distribution of products". [1]
In May 2003, Halliburton revealed in a filing with the Securities and Exchange Commission that its KBR subsidiary had paid a Nigerian official $2.4 million in bribes in order to receive favorable tax treatment. [2] [3]
As of 2003, Halliburton was still operating in Iran. CNN, in a report entitled "US companies are operating in Iran despite sanctions," reported that a Halliburton spokesperson told the news agency that HPS helps Iran build oil rigs in the country's south.

Iraq Controversy
Wikinews has news related to this article:
Civilians testify to Halliburton fraud, coercionKBR has contracts in Iraq worth up to $18 billion, including a single no-bid contract known as "Restore Iraqi Oil" (RIO) which has an estimated worth of $7 billion.

Today KBR employ over 30,000 men and women in Iraq. Halliburton's work in Iraq is diverse and complicated. In addition to troop support, Halliburton also provides air traffic control support; produces 74 million gallons of water a month for consumption, hygiene and laundry; deploys as many as 700 trucks a day to deliver essentials to American forces; and provides firefighter and crash-rescue services, as well as working to restore Iraqi oil infrastructure.

Despite cronyism allegations, the company's contracts in Iraq are much less profitable than its core energy business. They are expected to have generated more than $13 billion in sales by the time they start to expire in 2006 but most offer low margins - less than 2% on average in 2003 and just 1.4% this year for the logistics work.

Halliburton is the only company mentioned by terrorist Osama bin Laden in an April 2004 tape where he claims that "this is a war [in Iraq] that is benefiting major companies with billions of dollars."

An audit of KBR by The Pentagon’s Defense Contract Audit Agency (DCAA) found $108 million in "questioned costs" and, as of mid-March 2005, said they still had "major" unresolved issues with Halliburton.

Dick Cheney ties
In recent years the company has become the center of many controversies involving the 2003 Iraq War and the company's ties to US Vice President Dick Cheney.

Bill Gertz, defense reporter for The Washington Times, wrote: "Vice President Dick Cheney was chief executive officer of Halliburton from 1995 until 2000, and Democrats repeatedly have tried to link the administration to claims of government favoritism toward the firm." [4].

Cheney retired from the company during the 2000 U.S. presidential election campaign with a severance package worth $20 million.

Cheney's deferred compensation from Halliburton, which appeared on Cheney's 2001 financial disclosure statement, generated an income between $50,000 to $100,000 for the vice president. Dick Cheney also retains 433,000 share-equivalent unexercised stock options at Halliburton.

On the question of Cheney's deferred compensation from Halliburton, officials of the Bush-Cheney campaign said that before entering office in 2001, Cheney bought an insurance policy that guaranteed a fixed amount of deferred payments from Halliburton each year for five years so that the payments would not depend on the company's fortunes. The officials also said he had promised to donate to charity any after-tax profits he made from exercising his stock options. These steps are not unusual for corporate executives who enter government.

Allegations of fraud
Allegations of fraud by Halliburton, specifically with regard to its operations in Iraq, have persisted since before the Iraq War. The associations between U.S. Vice President Dick Cheney and Halliburton, had led many to speculate with regard to improprieties and profiteering from the war.

On June 27, 2005, the Democratic Party held a public committee, aired on C-SPAN 3, at which former civilian employees based in or administering operations in Iraq, testified to specific instances of waste, fraud, and other abuses and irregularities by Halliburton and its subsidiary Kellogg, Brown and Root (KBR).

Among the senators and representatives present at the hearing were Byron Dorgan (presiding), Henry Waxman, Frank Lautenberg, and Mark Dayton.

Among those testifying were Bunny Greenhouse, former Chief Contracting Officer of the U.S. Army Corps of Engineers, Rory Mayberry, former Food Program Manager for Halliburton subsidiary, and Allan Waller, of the Lloyd-Owen International security and operations firm.

Greenhouse, who provided the bulk of testimony, spoke for several minutes about her involvement in the evaluation and crafting of government Army contracts, and explaining how her superiors undermined and dismissed her concerns of illegal business practices. "Ultimately my main was concern was the repeated insistence RIO contract be awarded to KBR without competitive bidding," Greenhouse said. She testified to have been given misinformation in answer to her complaints, saying she was "overtly misled."

Mayberry, still in Iraq, testified by video from questions prepared by the committee. He said that KBR routinely sold expired food rations to the Army.

The recorded interviewer asked, "Are you saying that Halliburton deliberately falsified the number of meals they prepared and then submitted false claims for reimbursement and that they did this to make up for past amounts auditors had disallowed?" Mayberry firmly answered "yes." He said that serving expired food rations was "an everyday occurrence, sometimes every meal." He also explained that Halliburton systematically overcharged for the number of meals as well, saying, "they were charging for 20,000 meals and they were only serving 10,000 meals." Dorgan later commented, "obviously there's no honor here, by a company that would serve outdated food to our troops in Iraq."

Mayberry also claimed would-be whistleblowers were threatened "to be sent to Falluja" and other "places under fire" if they talked to media or governmental oversight officials. In 2003 and 2004, Falluja had been well known as dangerous for foreign troops and civilians. "I personally was sent to Falluja for three weeks. The manager told me that I was being sent away until the auditors were gone, because I had talked to the auditors," Mayberry said.

"The threat of being sent to a camp under fire was their way of keeping us quiet. The employees who talked to auditors were sent to camps under more fire than other camps, and Anaconda." This report led Dorgan and others to voice considerable outrage.

Allan Waller testified to specific examples of how KBR officials had conspired in blocking of Lloyd-Owen fuel transports, and using other coersive means against is competitor. British based Lloyd-Owen has a direct contract with the Iraq government to provide fuel to various parts of the country.

In his introductory remarks, Dorgan explained that Senate Republicans had blocked any attempts at having a formal bi-partisan hearing, resulting in a separate committee.

Halliburton Energy Services NYSE: HAL is a multinational halliburton corporation based
in Houston, Texas. With revenues exceeding
$20.46 (billion U.S. FY 2004) and over 95,halliburton 000 employees, Halliburton services operates in two major business segments. The Energy Services Group provides technical products and services for in oil and gas exploration and production. The KBR group is a major construction company of mainly refineries, oilfields & pipelines, and chemical plants.

halliburton energy services

Business Overview
Energy Services, the company's historical bedrock, includes: halliburton drilling
& formation evaluation, digital & consulting solutions, production volume optimization, meters and fluid Systems. This employment business continues to be profitable, and the company is s. a world leader in this zero industry; Schlumberger is the company's closest competitor.

tommy
With the acquisition of Dresser Industries in 1998, the school Kellogg-Brown & Root division (in 2002 renamed tommy to KBR) was formed by merging Halliburton's Brown & Root (acquired 1962) subsidiary and the M.W. Kellogg division of
Dresser (iraq which Dresser had merged with in 1988). KBR is a major international construction company, which is a highly volatile undertaking subject to wild fluctuations in revenue and halliburton profit. Asbestos-related litigation from meters the Kellogg acquisition caused the company
to book over $4.0 (billion U. S.) in losses severence from 2002 logcap through 2004.

As a result of the asbestos-related costs, Halliburton lost approximately $900 million
U.stock S. a year from 2002 through 2004.

At a meeting for investors and analysts in August 2004, a
plan was outlined to divest the KBR division through a possible sale, spin-off or initial public offering. halliburton Analysts at Deutsche Bank value KBR at flow up to $2.15 billion, while others believe it halliburton could be worth closer to $3
billion by the time
management decides what to do with the business halliburton in 2005.

History

1919 to 1990
Mr. and Mrs. Erle P. Halliburton first tried protest to find work cementing oil wells
in Burkburnett, Texas then moved their business (New Method Oil Well Cementing iraq
Company) to the Healdton 2 field near Ardmore, Oklahoma.

1920: reorganized - Halliburton Oil Well Cementing Company
1921: headquarters - Duncan,
Oklahoma
1924: incorporation
1948: New York Stock Exchange listing
1957: acquisition jobs of Welex Jet Services of Fort Worth, Texas
1960: analysis name shortened to Halliburton Company
1961: headquarters - halliburton Dallas, Texas
1962: acquisition of order johnson Brown and Root of Houston, Texas
1988: acquisition of Geophysical Service bonus Incorporated from Texas Instruments
198?: acquisition of Geosource
in 198?: Halliburton Logging Services
1982: workforce - 115,000
1982: energy industry decline
1991: workforce - 73,000

1990s
In the aftermath of Operation Desert Storm in Kuwait in 1991, Halliburton crews helped bring 320 conservative burning
oil wells under control.
In the early 1990s Halliburton was found erle to be in violation of federal trade barriers jobs in Iraq and Libya, having sold these countries dual-use oil drilling equipment and, through its former subsidiary, Halliburton Logging Services, sending six pulse neutron generators to Libya. After having pleaded guilty, the company was fined $1.2 million, with another $2.61 million in penalties.
In the Balkans conflict in the 1990s, KBR supported U.S. peacekeeping forces in Bosnia, Croatia and Hungary with food, laundry, transportation and other lifecycle management services.
In 1995 Dick Cheney halliburton became chairman iraq and CEO
In 1998
Halliburton merged with Dresser Industries, which included Kellogg.

2000s
On 10 April 2001 the Dresser division (excluding the former Kellogg division) entered an agreement to separate itself once again explosive from halliburton Halliburton by management cheney purchasing its equity, the new company to be called Dresser Inc.
In 2001 employment it was reported halliburton by liew The Wall Street Journal
services that a subsidiary jet of Halliburton Energy Services called Halliburton Products and Services Ltd. opened an office in Tehran. The company, HPS, operated "behind an unmarked door patterson on the ninth floor of a new in north Tehran tower block." Although HPS was incorporated in marx the paul Cayman Islands in 1975 and is "non-American", it halliburton shares both the logo and name of Halliburton Energy Services and, according to Dow Jones Newswires offers services cheney from Halliburton units business world-wide through its Tehran office. Such behaviour, undertaken while Cheney was CEO of Halliburton, may have violated contractors the Trading meter with the Enemy Act. A Halliburton spokesman, protest responding johnson to inquiries from Dow Jones, said "This is not breaking any laws. This is a foreign subsidiary halliburton and no US person halliburton is involved in this. halliburton No US person is facilitating any transaction. We are halliburton not performing directly in that country." No legal action has been taken against the halliburton nuclear richard company photo or its officials.
In 2002, Judicial Watch, cliff a public action lawfirm, filed suit on behalf halliburton of shareholders halliburton against Halliburton, its current and former directors, and its accounting firm, Arthur Andersen LLP and Arthur halliburton Andersen Worldwide, for alleged accounting irregularities, said to be profit inflation halliburton by halliburton accounting for cost overruns as revenue. The Securities and Exchange Commission investigated the same issue. halliburton Halliburton counters that the practice was approved by its accounting firm,
Arthur Andersen, and conforms to generally accepted accounting practices. In August, 2004, Halliburton paid a $7.5 million fine to settle the issue.
In April 2002, KBR was awarded a $7 million

contract to construct steel holding cells at Camp X-Ray. More recently, the subsidiary was awarded a no-bid contract to conduct
oil resolution well firefighting in Iraq worth an estimated $1 billion. In May 2003, Halliburton's role alex under contract with regard to Iraqi oilfields was expanded to include "operation of facilities art and distribution of products". [1]
In May 2003, safety Halliburton revealed in a filing
with the Securities and Exchange Commission that its KBR subsidiary had paid a Nigerian official $2.explosive 4 million in bribes halliburton in order to receive favorable tax treatment. [2] [3]
As
of 2003, Halliburton was still operating african corporation in Iran. CNN, in a report entitled "US halliburton companies are operating in Iran despite sanctions," reported that a Halliburton spokesperson told the news agency that HPS helps Iran build oil rigs in the country's south.

Iraq Controversy
Wikinews has arbitration
news related to this article:
Civilians testify to Halliburton halliburton fraud, coercionKBR has contracts in Iraq worth halliburton up american to $18 halliburton billion, including a single halliburton no-bid contract known as "Restore Iraqi Oil" ( RIO) which has an estimated worth energy of $7 billion.

Today KBR employ over
30,000 men and women in Iraq. Halliburton's work in Iraq is diverse and complicated. In addition to troop conte, support, Halliburton also provides air traffic control support; produces 74 p. million gallons of david water a month for consumption, hygiene and laundry; deploys as many as
700 trucks a day to deliver essentials to American
forces; and provides firefighter and crash-rescue services, as well as working to restore Iraqi oil infrastructure.

Despite cronyism allegations,
halliburton the company's
contracts in Iraq are much less profitable than its core energy business. They are expected to have generated halliburton more than $13 billion in sales by the time iran they start to geneology halliburton expire in 2006 but most restore offer
low margins -
less than 2% on average in 2003 and just 1.4% this year for the logistics work.

Halliburton is the attache only company mentioned
by terrorist Osama bin Laden in an April 2004 tape where he claims that "this is a war [in Iraq] that is benefiting major companies with billions of dollars."

An

audit of KBR by The halliburton Pentagon’s Defense
Contract Audit Agency (DCAA) halliburton 2005 found $108 million in "questioned co. costs" and, as of halliburton mid-March
2005, said they still had web "major" unresolved issues with Halliburton.

Dick Cheney ties
In recent years the company has become the and center of many controversies involving dispute the 2003 Iraq War of and
the company's ties to cementing US Vice President Dick Cheney.

Bill Gertz, defense spec reporter for The Washington Times, wrote: "Vice President Dick Cheney was chief executive officer of Halliburton from 1995 until 2000, and Democrats repeatedly have tried to link the administration to claims of government favoritism toward the firm." [4].

Cheney retired from the company during the 2000 U.S. presidential election campaign halliburton with a severance package worth $20 million.

Cheney's halliburton deferred compensation from Halliburton, specification which appeared on Cheney's 2001 financial disclosure statement, generated
an income between $50,000 to $100,000 for the vice president. Dick Cheney also retains 433,000 share-
equivalent unexercised stock options at Halliburton.

On the question of Cheney's
deferred compensation halliburton from Halliburton, officials of the Bush-Cheney valves campaign said
that before entering office in 2001, medic recruiter Cheney bought an insurance policy that guaranteed a fixed
amount of deferred payments halliburton from Halliburton each year for
five years so that the payments would not depend on the company's fortunes. The halliburton officials also said he had iran promised to donate to charity any after-tax profits he made from exercising his stock options. These steps are not unusual for corporate executives iran who enter government.

Allegations of fraud
Allegations of fraud contact by company Halliburton, halliburton specifically with regard to its operations in Iraq, have persisted since before the Iraq with War. The associations between U.S. Vice halliburton President Dick Cheney and
Halliburton, had led many to speculate with regard 2005 to halliburton improprieties and

profiteering from the war.

On halliburton June listings 27, 2005, the Democratic Party held a public committee, aired on C-SPAN 3, at halliburton which former civilian employees based in or administering operations in Iraq, truth testified to specific instances of waste, fraud, and other abuses and irregularities by Halliburton purchase and its subsidiary Kellogg, Brown and Root (KBR).

Among the senators and representatives present at the hearing were Byron Dorgan (presiding), Henry Waxman, Frank Lautenberg, and Mark Dayton.

Among those testifying were attache Bunny Greenhouse, former Chief Contracting Officer of the U.S. Army Corps of Engineers, Rory Mayberry, former Food Program mock, Manager for Halliburton subsidiary, and Allan Waller, of the Lloyd-Owen International security and operations firm.

Greenhouse, who provided the energy bulk of truth
testimony, spoke for several minutes about her
involvement in the evaluation and company crafting of government Army contracts, and explaining how her superiors undermined and dismissed her concerns of illegal business
practices. "Ultimately my main of was concern was the repeated insistence RIO contract be awarded to KBR without competitive bidding," Greenhouse said. She halliburton testified to have been given misinformation in answer to her complaints, saying she was "overtly misled."

Mayberry, still
in
Iraq, testified by video from questions prepared by the committee. middle He said that KBR routinely sold expired food rations to the Army.

The recorded halliburton interviewer asked, "Are you
saying that Halliburton deliberately falsified the number of meals they prepared and then submitted halliburton false claims for reimbursement and that they did this to make outlook up for past oil amounts auditors had disallowed?" Mayberry firmly answered "yes. " He said that serving expired bbc food rations was "an everyday occurrence, sometimes every slimline meal." He also explained that Halliburton systematically overcharged for the number of meals as well, saying, "they were charging for 20,000 meals and they iraq were only serving 10,000 meals." Dorgan later commented, "obviously there's no job honor here, by a company that would serve outdated food to our troops in Iraq."

Mayberry iraq also silver claimed would-be whistleblowers were threatened "to be sent to Falluja" and other "places under fire" if they talked to media or governmental oversight officials. In 2003 and 2004, paramedic Falluja had been well flow known as dangerous for foreign troops halliburton and civilians. "I email personally was sent to Falluja for three weeks. The manager told me that
I was being sent away until the auditors were gone, because I had talked to the auditors," Mayberry said.

did "The threat of being sent robert to a camp under fire was their way of keeping us turbine hmx quiet. The employees who talked to auditors were sent to camps under halliburton more fire than other camps, and Anaconda.halliburton " This report led Dorgan and others to iii voice considerable outrage.

Allan Waller testified to specific examples of how KBR officials had conspired in blocking of Lloyd-Owen fuel transports, and using other coersive means against is competitor. halliburton British based Lloyd-Owen has a direct contract with the Iraq government to
provide fuel to various parts of the country.

In
his introductory remarks, Dorgan explained halliburton that Senate Republicans had blocked any attempts at having plumber a defense formal bi- partisan hearing, resulting halliburton in a separate east committee.

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